Scientex Q2 net profit rises to RM73.7 mln

KUALA LUMPUR, March 19 (Bernama) -- Scientex Bhd’s net profit for the second quarter ended Jan 31, 2019 rose to RM73.74 million from RM67.9 million recorded in the same period last year.

Revenue increased to RM766.58 million from RM630.68 million previously.

Managing director Lim Peng Jin said the growth was driven by higher plant utilisation at the manufacturing division, including increased contribution from the company’s new stretch film plant in Arizona, US that commenced in January 2018 and acquisition of Klang Hock Plastic Industries completed in May 2018, as well as higher progress billing from its property segment’s developments projects.

“Scientex’s expanded manufacturing footprint allows us to more aggressively capture new growth opportunities in the global flexible packaging market,” he said.

Going forward, he said the company would remain steadfastly committed to growing its manufacturing and property segments.

He said the company is targeting to launch new properties with gross domestic value (GDV) worth RM600 million in the second half of financial year 2019.

In the first half of financial year 2019, the company’s new property launches amounted to RM500 million in GDV.

He said the company is also expected to conclude the mandatory general offer (MGO) to acquire all remaining shares of Daibochi, a leading regional flexible packaging provider that serves reputed multinational consumer brands, in April.

“The combination of Scientex and Daibochi allows us to share synergistic resources, as well as collaborate on innovation and product development.

“This would strengthen our manufacturing division’s competitiveness, and is poised to create a formidable flexible packaging entity in the global market,” he added.

-- BERNAMA